27. January 2023

Hong Kong Striving to Become Global Crypto Hub, Licensing On The Way

• Hong Kong is interested in becoming a global crypto hub by being more welcoming to crypto companies.
• Financial Secretary Paul Chan recently spoke at the Web3 forum reiterating that Hong Kong will continue to try converting itself into a global crypto hub.
• The city has completed the legislative work necessary to set up a licensing regime for virtual asset services.

Hong Kong is quickly developing into a leading crypto hub, with the city’s Financial Secretary Paul Chan recently speaking at the Web3 forum in Cyberport to reiterate the city’s commitment to becoming a global crypto hub. The city is taking a pro-crypto stance, with authorities soon issuing licenses to crypto firms, and encouraging leading tech firms and startups to move their headquarters and expand their operations to Hong Kong.

The city is taking steps to ensure that crypto companies can easily register with the new licensing system. This new regulatory regime requires crypto exchanges to constantly ensure compliance with the current licensing requirements. This includes anti-money laundering and counter-terrorism financing regulations, as well as the obligation for exchanges to maintain sound risk management.

The hope is that by opening up to newer crypto companies or startups, it will increase crypto retail participation in Hong Kong. The city remains optimistic despite the recent FTX fiasco, and is continuing to work on establishing itself as a global crypto hub.

To further support the goal of creating a conducive environment for the crypto industry, the Hong Kong administration has established a virtual asset portfolio management company and a virtual asset trading platform. This shows the city’s commitment toward creating an infrastructure that will foster the growth of the crypto industry.

The news that Hong Kong is aiming to become a global crypto hub comes at a time when the Singapore crypto market has faltered due to the fall of FTX. However, Hong Kong remains undeterred in its mission and is taking the necessary steps to ensure its success. The city is well-positioned to become the leading crypto hub in the region, and is set to make a huge impact on the global crypto market.